Coca-Cola HBC (CCH.L) - Company Research
Last Updated: 29 April 2026
Coca-Cola HBC AG (LSE: CCH) is a Switzerland-headquartered, FTSE 100-listed Coca-Cola anchor bottler — the world's third-largest by volume (~2 bn unit cases) — with operations in 28 countries split across three reporting segments: Established markets (Italy, Greece, Switzerland, Austria, Northern & Republic of Ireland, Cyprus), Developing markets (Poland, Hungary, Czechia, Slovakia, Slovenia, Croatia, Baltics) and Emerging markets (Russia/Multon Partners, Nigeria, Romania, Bulgaria, Serbia, Ukraine and ten others). FY25 results (released 10 February 2026) were strong: organic revenue +8.1%, organic EBIT +11.5%, comparable EPS +19.7% to €2.72, ordinary dividend +17% to €1.20, and net debt / comparable EBITDA at 0.7×. Headline reported revenue was €11.6 bn (+7.9% YoY) and free cash flow ~€700 m. The biggest forward catalyst is the Coca-Cola Beverages Africa (CCBA) acquisition announced 21 October 2025: a 75% stake from The Coca-Cola Company and Gutsche Family Investments at a combined US$2.6 bn purchase price (US$3.4 bn equity value for 100%), which is on track to close by end-2026 subject to regulatory approvals and which post-deal will make South Africa the largest single market (~15% of revenue), displacing Russia (~13%). Q1 2026 momentum has continued under FY26 guidance of organic revenue +6–7% and organic EBIT +7–10%. Late April 2026 share price was ~4,170–4,274p with a market cap ~£15.98 bn. CEO Zoran Bogdanovic has been in role since December 2017 (~8.4 years) and is leading the CCBA integration. Russia exposure remains the principal ESG/governance overhang; Coca-Cola HBC continues to operate in Russia under the Multon Partners brand.
1. Company Snapshot
| Company | Coca-Cola HBC AG |
| Ticker | LSE: CCH (FTSE 100); ATHEX secondary listing also exists |
| Sector / Industry | Consumer Staples — Non-Alcoholic Beverages (Coca-Cola anchor bottler) |
| Country of incorporation | Switzerland |
| HQ | Turmstrasse 26, 6312 Steinhausen, Switzerland |
| CEO | Zoran Bogdanovic (since 7 December 2017; ~8.4-year tenure) |
| Chair | Anastassis G. David |
| Reporting currency | Euro (€) |
| Geographic footprint | 28 countries; 3rd-largest Coca-Cola anchor bottler globally by volume (~2 bn unit cases) |
| Segments | Established markets / Developing markets / Emerging markets (re-segmented under CCH's reporting framework) |
| Fiscal year end | 31 December |
| Share price (LSE, 25 Apr 2026) | ~4,170p (other late-April quotes ~4,274p) |
| Market cap | ~£15.98 bn |
| FY2025 revenue (reported) | €11.60 bn (+7.9% YoY) |
| FY25 organic revenue growth | +8.1% |
| FY25 organic EBIT growth | +11.5% |
| FY25 comparable EPS | €2.72 (+19.7%) |
| FY25 free cash flow | €700 m |
| Net debt / comparable EBITDA (FY25) | 0.7× |
| Ordinary dividend (FY25) | €1.20/share (+17%); 44% payout ratio |
| Ex-dividend / payment | 14 May 2026 / 9 June 2026 |
| Pending acquisition | 75% of Coca-Cola Beverages Africa (CCBA) at US$2.6 bn (US$3.4 bn equity 100%) — targeted close end-2026 |
| FY26 guidance | Organic revenue +6–7%; organic EBIT +7–10%; FX EBIT impact €0–30 m headwind; tax rate 26–28% |
2. Bull Case vs Bear Case
| Bull Case | Bear Case |
|---|---|
| Strong execution: organic revenue +8.1% and organic EBIT +11.5% in FY25 (5th consecutive year of growth); comparable EPS +19.7% to €2.72; ROIC +100bp to 19.4%. | Russia exposure: Coca-Cola HBC Russia rebranded "Multon Partners" in August 2022 and continues operations; Multon Partners reportedly generated ~10.25 bn rouble profit in 2023. Russia was ~13% of FY24 revenue. |
| Africa transformation: CCBA acquisition (US$2.6 bn for 75%) targeted close by end-2026 will lift CCH into one of the largest African beverage operators; South Africa to overtake Russia as the largest market post-deal (~15%). | Acquisition execution risk: regulatory and antitrust approvals across multiple African jurisdictions; integration of a 14-country footprint is the largest deal in CCH's history. R800 m provision already set aside in 2026 for transaction costs. |
| Emerging markets organic revenue +13.2% with strong volume growth (Africa-led, principally Nigeria); Established markets +2.3%; Developing markets +6.1%. | Established markets organic EBIT -2.8% in FY25 driven by step-up in marketing/digital investment — near-term margin pressure in the most stable segment. |
| Balance sheet strength: net debt / comparable EBITDA 0.7× gives meaningful capacity to absorb the CCBA financing without straining the dividend or operating flexibility. | FX translation: ~45% emerging-market exposure including ZAR, NGN, RUB, EGP, KES, UGX, TZS post-deal — meaningfully heavier FX volatility than CCEP. |
| FY26 guidance: organic revenue +6–7%, organic EBIT +7–10% — continued double-digit EBIT growth implied; ordinary dividend +17% to €1.20 with 44% payout ratio leaves room. | Reputational overhang from continued Russia operations is a sustainability/ESG screen exclusion at multiple institutional investors; bonus & long-term-incentive plans are designed within the existing structure but external scrutiny remains. |
3. What Does This Company Actually Do?
CCH is a franchised Coca-Cola anchor bottler operating in 28 countries (pre-CCBA) and reporting in three regional segments. Each segment combines the Coca-Cola system soft drinks portfolio with selected partner brands (Costa Coffee RTD, Monster, Caffè Vergnano, Bambinos juice in Eastern Europe, etc.) and a growing Premium Spirits/RTD operation in selected markets.
| Segment | Key markets | FY25 organic revenue | FY25 organic EBIT |
|---|---|---|---|
| Established markets | Italy, Greece, Switzerland, Austria, Northern Ireland, Republic of Ireland, Cyprus | +2.3% (volumes flat) | -2.8% (investment step-up) |
| Developing markets | Poland, Hungary, Czechia, Slovakia, Slovenia, Croatia, Baltic states | +6.1% (good revenue per case + volume) | +5.6% |
| Emerging markets | Russia/Multon Partners, Nigeria, Romania, Bulgaria, Serbia, Ukraine, Belarus, Armenia, Bosnia & Herzegovina, Moldova, Montenegro, North Macedonia & Egypt | +13.2% (Africa-led volume) | +23.2% |
Category dynamics FY25: Sparkling and Energy categories led volume growth; package mix improved with single-serve up 50bp; category mix improved with increased Energy, Sports Drinks and Premium Spirits contribution. NARTD value share +130bp YoY.
Russia (Multon Partners): Renamed from Coca-Cola HBC Russia on 26 August 2022; reportedly generated 10.25 bn rouble profit in 2023 (~$111 m). Russia accounted for ~13% of FY24 revenue. Continued operation under independent local branding while Coca-Cola HBC retains the bottling capability.
4. The Business Model
- Franchise structure: Like CCEP, CCH buys concentrate from The Coca-Cola Company (TCCC) and bottles, distributes and merchandises across 28 countries. The Coca-Cola Company is a strategic shareholder via Coca-Cola Holdings (Overseas) Limited.
- Volume / pricing mix: FY25 organic revenue +8.1% with strong volume growth in Emerging markets and pricing-led growth in Established. Single-serve mix +50bp; Energy / Sports / Premium Spirits step-up.
- Margins: FY25 organic EBIT +11.5% on +8.1% organic revenue — positive operating leverage; ROIC +100bp to 19.4%; comparable EPS +19.7% to €2.72.
- Capital allocation: Ordinary dividend +17% to €1.20 (44% payout ratio); buyback intention modest; balance sheet preserved for CCBA financing (net debt 0.7× EBITDA at FY25).
- Subsidy/regulatory credit dependency: Negligible — CCH does not earn government-subsidy revenue. Sugar / packaging tax regimes in Italy, UK (Northern Ireland), Hungary, Poland and elsewhere are pricing pass-throughs; Russia operations are subject to local regulatory framework.
- CCBA acquisition (announced 21 Oct 2025): 75% stake at US$2.6 bn (100% equity US$3.4 bn) from The Coca-Cola Company and Gutsche Family Investments. Brings together two leading bottlers in Africa across 14 countries; targeted close end-2026 subject to regulatory and antitrust approvals. R800 m has been set aside in 2026 for transaction costs (Business Day SA, 13 February 2026).
- Africa rationale: Population growth, rising NARTD per-capita consumption, hub-and-spoke distribution; CCBA brings ~40% of Africa's Coca-Cola system volume into a unified CCH structure.
5. Financial Health
Five-year financials (calendar year-end):
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Reported revenue (€bn) | 7.17 | 9.20 | 10.18 | 10.75 | 11.60 |
| Organic revenue YoY | +19% | +30% | +15% | +13.7% | +8.1% |
| Comparable EBIT (€m) | ~782 | ~894 | ~1,089 | ~1,210 | ~1,350 |
| Organic EBIT YoY | +13% | +24% | +17% | +12.2% | +11.5% |
| Comparable EPS (€) | 1.59 | 1.62 | 1.95 | 2.27 | 2.72 |
| Free cash flow (€m) | ~430 | ~245 | ~520 | ~620 | ~700 |
| Net debt / comparable EBITDA | ~1.4× | ~1.2× | ~0.9× | ~0.8× | 0.7× |
| DPS (€) | 0.71 | 0.78 | 0.93 | 1.03 | 1.20 |
| ROIC | ~14% | ~14% | ~17% | ~18.4% | 19.4% |
FY25 segment EBIT growth: Established -2.8% (investment step-up), Developing +5.6%, Emerging +23.2%. The mix continues to shift toward Emerging.
6. Valuation & Market Data
| Share price (LSE, 25 Apr 2026) | ~4,170p |
| Share price (recent late-April quotes) | ~4,274p (range) |
| Market cap | ~£15.98 bn |
| Shares outstanding | ~371 m (incl. CDIs & ATHEX shares) |
| FY25 comparable EPS | €2.72 |
| FY25 reported EPS | ~€2.50 (estimated; reported diluted basis) |
| Trailing P/E (~€48 share / €2.72) | ~17.6× |
| FY25 free cash flow | €700 m |
| FCF yield | ~3.7–3.9% |
| Net debt / comparable EBITDA | 0.7× |
| Ordinary dividend (FY25) | €1.20 (+17%); 44% payout ratio |
| Dividend yield (trailing) | ~2.45% |
| Ex-dividend date | 14 May 2026 |
| Dividend payment date | 9 June 2026 |
| 6-month relative performance | +19.04% vs FTSE All-Share |
7. What Are They Building / What's Coming?
- Coca-Cola Beverages Africa (CCBA) acquisition: 75% stake at US$2.6 bn purchase price (US$3.4 bn 100% equity value), signed 21 October 2025; targeted close by end-2026 subject to regulatory/antitrust approvals across multiple African jurisdictions. R800 m provision in 2026 for transaction costs.
- FY26 guidance (issued with FY25 results): Organic revenue +6–7%; organic EBIT +7–10%; FX EBIT impact €0–30 m headwind; tax rate 26–28%.
- Energy & Premium Spirits expansion: Continued roll-out of Monster, Caffè Vergnano RTD, Costa Coffee RTD across the geographic footprint; Premium Spirits joint venture with Brown-Forman in selected markets.
- Single-serve mix: +50bp in FY25; ongoing strategic priority to drive revenue per case.
- Digital & AI: Investment in route-to-market analytics, customer-segmentation AI, retail execution platforms; Established markets EBIT step-down -2.8% in FY25 reflects the related opex investment.
- Africa post-CCBA structure: South Africa to overtake Russia as the largest single market (~15% of revenue post-deal vs Russia ~13% pre-deal).
- Multon Partners (Russia): Continued local-branded operation; not part of incremental investment programmes; subject to ongoing reputational scrutiny.
8. Competitive Landscape
| Peer | Geography | Latest revenue | Notes |
|---|---|---|---|
| Coca-Cola HBC AG | Europe (Established/Developing/Emerging) + Russia (Multon Partners) + Africa via pending CCBA | €11.6 bn FY25 | Subject company — world's 3rd-largest Coca-Cola anchor bottler by volume |
| Coca-Cola Europacific Partners (LSE: CCEP) | Western Europe + Asia-Pacific (incl. Australia, Indonesia, Philippines) | €20.9 bn FY25 | Largest Coca-Cola bottler by revenue; non-overlapping geographies with CCH |
| The Coca-Cola Company (NYSE: KO) | Global concentrate franchisor | n/d | Brand owner; strategic shareholder of CCH and CCEP; counterparty to CCBA deal |
| Coca-Cola FEMSA (NYSE: KOF) | Latin America | n/d | 2nd-largest Coca-Cola bottler globally; LatAm coverage |
| PepsiCo (NASDAQ: PEP) | Global brand owner + bottler | n/d | Direct brand competitor across most CCH markets |
| Heineken / Carlsberg / AB InBev (Africa) | Africa beer + adjacent NARTD | n/d | Will be the principal post-CCBA competitive set in African NARTD adjacencies |
| Local soft-drinks competitors | Country-by-country (e.g. Loux in Greece, Lucozade in UK NI) | n/d | Diverse domestic competition across 28 countries |
Within the franchised Coca-Cola system, CCH and CCEP are the two large publicly-listed European-headquartered bottlers, with non-overlapping geographic footprints. CCH is structurally smaller (revenue, market cap) but has a higher organic growth rate and (post-CCBA) a step-change in scale across Africa.
9. Leadership and Ownership
CEO: Zoran Bogdanovic (since 7 December 2017; tenure ~8.4 years; with Coca-Cola HBC since 1996; previously GM Croatia, Switzerland and Greece). Executive Director since 11 June 2018. Currently leading the CCBA acquisition and integration.
Chair: Anastassis G. David.
Top institutional shareholders: The Coca-Cola Company (via Coca-Cola Holdings (Overseas) Limited — significant minority); Kar-Tess Holding (the Greek family-related investment vehicle); plus public/institutional including BlackRock and Vanguard. Free float majority is widely held.
Average tenure of management team ~4.9 years; board ~6 years.
Insider activity: routine executive RSU vestings under the Long-Term Incentive Plan; no material discretionary share purchases or sales reported in the immediate run-up to this report.
10. Risks and Challenges
- Russia / Multon Partners exposure: Continued operations in Russia under the Multon Partners brand following the August 2022 rename; ~13% of FY24 revenue. Reputational, ESG and sanctions/regulatory risk; institutional exclusion at certain investors.
- CCBA acquisition execution: US$2.6 bn deal across 14 African jurisdictions requires multiple regulatory and antitrust approvals; integration of two large bottling networks; FX exposure across ZAR, NGN, KES, EGP, UGX, TZS post-deal.
- Established markets margin pressure: FY25 organic EBIT -2.8% on increased investment; near-term margin step-down in the most stable segment.
- Macroeconomic / consumer trade-down: Recession-sensitivity in Established and Developing markets; the company explicitly flagged a "challenging macroeconomic and geopolitical environment" for 2026.
- FX translation: Heavy emerging-market FX exposure (RUB, NGN, ZAR post-CCBA, EGP, plus various CEE currencies) drives reported revenue volatility vs organic.
- Sugar / packaging taxes: Italy plastics tax, Hungary food tax, Poland sugar tax, UK Soft Drinks Industry Levy (NI), EPR regimes — pricing pass-throughs but margin and volume sensitivity remain.
- Energy-drink regulation: Ongoing risk of marketing/age-of-sale restrictions across multiple jurisdictions.
- Capital allocation: CCBA deal financing will increase net debt — current 0.7× ND/EBITDA provides headroom but post-deal leverage will rise; refinancing in the 2026 environment carries rate risk.
- Geopolitical tensions: Ukraine, Belarus, Moldova exposures all carry elevated risk relative to Western Europe peers.
- Concentrated strategic shareholder: The Coca-Cola Company is both franchisor and shareholder; alignment is strong but options for radical strategic change are constrained.
11. Recent Developments
- 13 February 2026: Business Day SA reports CCH on track with CCBA acquisition; R800 m set aside in 2026 for transaction costs.
- 10 February 2026 — FY 2025 results: Reported revenue €11.60 bn (+7.9%); organic revenue +8.1%; organic EBIT +11.5%; comparable EPS €2.72 (+19.7%); free cash flow €700 m; ROIC 19.4%; ND/comparable EBITDA 0.7×. Ordinary dividend €1.20 (+17%, 44% payout). FY26 guidance: organic revenue +6–7%, organic EBIT +7–10%.
- 21 October 2025: CCBA acquisition announced — 75% stake at US$2.6 bn purchase price (US$3.4 bn 100% equity value) from The Coca-Cola Company and Gutsche Family Investments. Targeted close by end-2026.
- Throughout 2025: 5th consecutive year of strong organic growth; volume growth led by Sparkling and Energy; package mix +50bp single-serve.
- August 2022 (historical context): Russia operations rebranded "Multon Partners" amid sanctions environment; continued operating profitability (~10.25 bn rouble in 2023).
12. Key Dates Coming Up
| Date | Event |
|---|---|
| 30 April 2026 | Q1 2026 trading update (typical timing) |
| 14 May 2026 | Ex-dividend date for FY25 ordinary dividend (€1.20) |
| 22 May 2026 (typical) | AGM (Steinhausen, Switzerland) |
| 9 June 2026 | FY25 ordinary dividend payment date |
| August 2026 (typical) | H1 2026 results |
| October 2026 | Q3 2026 trading update |
| End-2026 (target) | CCBA acquisition completion (regulatory approvals dependent) |
| February 2027 | FY 2026 full-year results |
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13. Thesis Verdict
The central thesis. Coca-Cola HBC is a franchised Coca-Cola anchor bottler operating across 28 countries in three regional segments, buying concentrate from The Coca-Cola Company and bottling, distributing and merchandising sparkling drinks, energy, coffee RTD and premium spirits. FY25 delivered a fifth consecutive year of growth, with organic revenue +8.1%, organic EBIT +11.5%, comparable EPS +19.7% to €2.72 and ROIC +100bp to 19.4%, led by Emerging markets organic revenue +13.2%. The structural driver is the mix shift toward Emerging markets and category premiumisation in single-serve, Energy and Premium Spirits. The nearest forward catalyst is the CCBA acquisition (75% stake, announced 21 October 2025), targeted to close by end-2026, alongside FY26 guidance of organic revenue +6–7% and organic EBIT +7–10%.
What would confirm or break it. Confirmation would come from CCBA regulatory and antitrust clearances across the 14 African jurisdictions, delivery within FY26 guidance, sustained Emerging-markets momentum, and Established-markets EBIT recovery after the FY25 -2.8% investment step-down. Materialisation of CCBA integration slippage, escalation of Russia/Multon Partners reputational or sanctions exposure (~13% of FY24 revenue), heavier emerging-market FX translation, sugar/packaging-tax tightening, or post-deal leverage rising materially above the current 0.7× net debt/EBITDA would weaken the thesis.
Watchpoints
- ConfirmsSubsequent earnings and filings reinforcing the figures presented in this report.
- ConfirmsSubsequent earnings and filings reinforcing the figures presented in this report.
- InvalidatesAny disclosure that directly contradicts a material claim in the bull case.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 29 Apr 2026.